AstraZeneca Reaches Vaccine Supply Deal With Four EU Nations
AstraZeneca Reaches Vaccine Supply Deal With Four EU Nations
(Bloomberg) --
AstraZeneca Plc and four European Union countries said they reached an agreement to distribute a coronavirus vaccine.
The Netherlands, Germany, France and Italy concluded a contract with the U.K. drugmaker to provide 300 million to 400 million doses of a possible vaccine in stages starting from the end of 2020, the Dutch government said in a statement on Saturday.
“This is an important step that we’re taking,” Dutch Health Minister Hugo de Jonge said. “A vaccine is crucial in combating the virus.” The four countries have reported more than 665,000 confirmed cases of the disease.
The deal marks the first concrete result for the four-nation alliance created earlier this month to help ensure Europe secures adequate supplies of any Covid-19 vaccine. The group is working in parallel with the European Commission, the 27-nation EU’s executive arm, which is also seeking to strike vaccine accords with drugmakers that have sufficient production capacity in the bloc.
AstraZeneca said it’s seeking to expand manufacturing capacity of the vaccine the company is developing with Oxford University and is open to collaborating with other businesses. Total manufacturing capacity currently stands at 2 billion doses. The company will make the vaccine available at cost, with governments agreeing to help cover development and manufacturing. Doses should cost a few dollars each.
“The cost is not that high on a per unit basis, but if we have to supply 6 to 7 billion doses, there is no way for a company like ours on our own could cover the costs,” AstraZeneca CEO Pascal Soriot said in conference call with journalists.
The company has reached similar agreements with the U.K.; U.S.; the Coalition for Epidemic Preparedness Innovations and Gavi the Vaccine Alliance for 700 million doses. It agreed on a license with the Serum Institute of India for the supply of an additional 1 billion doses, principally for low- and middle-income countries.
The company is producing the vaccine as it works its way through the testing process, so it can begin distribution immediately if it’s proved effective. The company hopes to have 100 million doses available for the U.S. by the end of the year, 30 million for the U.K. and close to 100 million for the rest of Europe, Soriot said on the call.
Europe is keen to avoid falling behind the U.S. or China in obtaining supplies of any immunization shot. The EU is seeking to mimic the U.S. Biomedical Advanced Research and Development Authority, which has entered into partnerships with vaccine companies in a bid to ensure quick availability for Americans of any successful candidates.
The four-country contract with AstraZeneca is initially for 300 million vaccines, according to the Dutch government, which said all EU countries will have the opportunity to sign up to the deal.
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